Saudi Arabia and UAE Lead MENA’s Sustainable Bond Market with $9.47 Billion Issued in H1 2025

Saudi Arabia has strengthened its position as the Middle East and North Africa’s leading issuer of sustainable bonds in the first half of 2025, accounting for a remarkable 66% of total regional issuances, according to data compiled by Bloomberg and regional financial analysts.

The Kingdom’s sustainable bond issuances reached $6.25 billion, marking a significant 25% jump over the same period last year, and underscoring its growing emphasis on sustainable finance in line with the country’s Vision 2030 agenda.

Driving this robust performance, Saudi Arabia’s government executed a landmark $1.58 billion sovereign sustainable bond issuance, supported by major contributions from the private sector.

Notably, Al Rajhi Bank led with two sustainable sukuk transactions totaling $1.7 billion, while the Saudi Electricity Company raised $1.25 billion through green sukuk. Additional support came from Alinma Bank, which issued $500 million in sustainable sukuk, and the Saudi British Bank with a $650 million Additional Tier 1 (AT1) issuance.

Regionally, the total value of green, social, sustainable, and sustainability-linked (GSSS) bonds issued in MENA reached $9.47 billion during the first six months of 2025, a slight decrease from $9.91 billion in the same period last year.

The dip was largely attributed to a halt in issuances from Egypt and Qatar, in addition to the adverse impact of rising global interest rates. Nonetheless, the ongoing momentum from Saudi Arabia and the UAE has kept the region’s sustainable finance market resilient.

The UAE ranked as the second-largest market, contributing $3.22 billion or 34% of the region’s total, featuring prominent debut issuances including a $700 million bond from the National Central Cooling Company (Tabreed) and a $500 million deal from property developer Omniyat.

Islamic finance instruments, particularly sukuk, dominated the sustainable debt landscape with $6.8 billion issued, representing a robust 17% year-on-year growth-reinforcing both Saudi Arabia and the UAE’s emerging status as global centers for sustainable Islamic finance.

$9.47 billion in half a year shows Gulf sustainable-debt depth is genuinely scaling, and sukuk-led issuance is doing most of the lifting - which changes what Gulf corporates should be planning for in their next capital raise. Our responsible-investment and ESG-strategy teams help clients position issuance strategy and second-party-opinion readiness for this repriced market.